FountainVest pursues $5.3b European sports acquisition

According to a filing, the consortium is willing to pay EUR40 per share for the company, which is best known for brands including Salomon and Wilson. Amer stock jumped 27% following the announcement and last closed at EUR34.2. 

Amer was founded as a tobacco company in 1950 and transitioned through a number of business models until the 1970s when it began manufacturing sporting goods. Its current portfolio includes a range of equipment, footwear, and apparel that is marketed in all major global markets. China accounts for 24% of production value and has been identified as an important growth area.

Net sales improved marginally during 2017 to about EUR2.7 billion ($3.1 billion), while profit declined 3% to EUR215 million. Sales in China grew by 15% to EUR120 million. The company noted that China growth was curtailed during the year by a major distribution model change aimed at optimizing a long-term growth plan targeting an annual sales rate of EUR200 million.

Recent activity by FountainVest in the consumer sports segment includes an investment of undisclosed size last year in Hong Kong-based fitness center studio operator The Pure Group alongside Ontario Teachers’ Pension Plan. In 2016, the private equity firm launched a China-focused sports fund with Focus Media with a target of $400 million. 

Anta designs and manufactures sporting goods under its own brand name and markets via stores in 10 countries, the vast majority of which are in China. It is an official marketing partner of the NBA in China and a licensee of NBA products in the country. The Hong Kong-listed company generated revenue of RMB16.7 billion ($2.4 billion) last year. 

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• Topics
• Greater China
• Consumer
• Buyouts
• Europe
• China
• Fountainvest Partners